Customs, intelligence agencies raise vigil to check gold smuggling

NEW DELHI: Suspecting increase in gold smuggling, economic intelligence agencies have alerted field formations at all transit points including airports and international borders to remain vigilant.

Customs officials are keeping extra vigil on both cargo and passengers arriving from the Gulf countries and other nations like Malaysia among others.

Officials of the Directorate General of Revenue Intelligence (DRI), mandated to check smuggling and evasion of customs duty, are also scanning major deals of the precious metal by bullion traders across the country, they said.

"Of late, there has been many cases of gold smuggling. Customs and DRI officials have arrested people for allegedly trying to smuggle gold into the country. The officials posted at the international transit points have been asked to keep extra vigil," a Finance Ministry official said.

The Central Board of Excise and Customs had earlier issued an alert to all field formations asking them to take extra measures to check gold smuggling, he said.

Officers of the Customs Overseas Intelligence Network posted abroad have also been asked to keep a hawk eye on consignments originating from there.

Finance Minister P Chidambaram, while presenting the General Budget in Lok Sabha, had said "passion for gold" was one of the factors for the Current Account Deficit (CAD).

The CAD in the first half of 2012-13 has been 4.6 per cent of Gross Domestic Product ( GDP). "The household sector must be incentivised to save in financial instruments rather than buy gold," he had said.

The value of gold seized by the Customs department at the international borders during the April-October period last year rose to Rs 50.02 crore from Rs 15.81 crore in the corresponding period in 2011.